§ 54. Mr. Rankinasked the Secretary of State for Scotland by how much the estimated general grant for Glasgow provided for in the new arrangements for financing local government will vary from the total of grants paid in 1956–57.
§ Mr. J. N. BrowneIt is estimated that the hypothetical figure of general grant for Glasgow quoted in the White Paper is about £540,000 less than the amount of the specific grants which it is proposed to absorb in the general grant. This loss will, however, be off-set by the proceeds of re-rating, from which I estimate that, on 1956–57 rate poundages, Glasgow will benefit by about £520,000. Other factors also enter into the comparison.
§ Mr. RankinI take it that the answer means that Glasgow will lose to the extent of £20,000. Is that the outcome of this new arrangement? What consultations were held with the Corporation of Glasgow before these new arrangements were announced, which are to be brought into force? Can the Minister give us the Corporation's view in the matter?
§ Mr. BrowneI cannot give the hon. Member the Corporation's view. The arrangements have not yet been brought into force. The calculations which I have given the hon. Member show a loss of £20,000 on an amount of nearly £8 million, but there are other factors which enter into the comparison, such as the fact that the general grant is paid 100 per cent. each year while the present grants are paid 90 per cent. each year. It would be unwise to make the assumption that Glasgow will lose anything at all from the transaction.